Pan American Silver (PAAS) AI Stock Analysis

• Market Cap: C$32.37B
• Dividend Yield: 0.88%
• Average Volume (3M): 923.98K
• Price to Earnings (P/E): 31.7
• Beta (1Y): 2.16
• Revenue Growth: 25.04%
• EPS Growth: N/A
• Country: CA
• Employees: 9,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Silver
• EPS (TTM): 0.67
• Shares Outstanding: 422,047,000
• 10 Day Avg. Volume: 542,159
• 30 Day Avg. Volume: 923,983
• PEG Ratio: -0.33
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 2.60
• P/FCF Ratio: 18.32
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$71.34
• Price Target Upside: -6.97% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: C$88.00 ▲(14.75% Upside)

Pan American Silver's strong financial performance and positive earnings call are the most significant factors driving the high score. The company's strategic acquisitions and exploration successes further bolster its growth prospects. While the stock's valuation is on the higher side, the overall outlook remains positive.

Positive Factors

Balance Sheet Strength

Conservative leverage and a 72% equity base give Pan American durable financial flexibility. Low debt-to-equity (0.17) and improving ROE support capital allocation for projects, dividends and M&A without stressing solvency through commodity cycles or short-term shocks.

Strong Cash Generation

Sustained free cash flow strength (record $251.7M quarter) and positive FCF conversion underpin durable funding for growth, dividends and exploration. Reliable cash generation reduces refinancing risk and funds capital-intensive mine development across cycles.

Resource and Production Growth

Material resource additions at La Colorada and higher 2025 production guidance indicate improving reserve life and volume scalability. Growing attributable production from Juanicipio and discoveries support long-term unit cost improvement and revenue durability.

Negative Factors

Operational Reliability Risks

Recurring technical problems across multiple mines suggest operational execution risk. Persistent interruptions can raise unit costs, delay projects, and require additional capital or downtime, undermining margin sustainability and predictable production profiles over the medium term.

Declining Ore Grades at Key Mine

Lower grades at Huaron signal structural headwinds to output and cost per ounce. Sustained grade decline forces more development and processing of waste, increasing AISC and capex needs, which can erode margins and cash returns absent offsetting discoveries or optimization.

Regulatory / Consultation Uncertainty

Unresolved ILO 169 consultation in Guatemala creates prolonged regulatory risk for Escobal. Indeterminate timelines can block project restarts, deter investment partnerships and impair long-term asset value, making future production and cash flow from the asset uncertain.

Pan American Silver Business Overview & Revenue Model

Company Description

Pan American Silver Corp., together with its subsidiaries, engages in the exploration, mine development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines in Canada, Mexico, Peru, Argentina, and Bolivia. It holds interests in the La Colorada, Dolores, Huaron, Morococha, Shahuindo, La Arena, Timmins West, Bell Creek, Manantial Espejo, San Vicente, Joaquin, Cap-Oeste Sur Este, and Navidad mines. The company was formerly known as Pan American Minerals Corp. and changed its name to Pan American Silver Corp. in April 1995. Pan American Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Pan American Silver generates revenue primarily through the sale of silver and gold, which are its core products. The company operates a diversified portfolio of mining assets, producing not only silver but also other metals such as copper, zinc, and lead. Revenue is significantly driven by the global market prices of these metals, with silver sales accounting for a substantial portion of total earnings. Additionally, Pan American Silver engages in strategic partnerships and joint ventures that allow for shared resources and expertise in mining operations. The company also benefits from cost management initiatives, operational efficiencies, and a focus on expanding its resource base through exploration projects, further enhancing its revenue potential.

Pan American Silver Financial Statement Overview

Summary

Pan American Silver demonstrates a solid financial position with strong revenue growth, improved profitability, and efficient cash generation. The company has managed to enhance its margins and returns while maintaining a conservative leverage profile. The financial statements reflect a positive outlook with potential for continued growth and stability.

Income Statement

Pan American Silver has shown strong revenue growth with a 4.21% increase in TTM compared to the previous year. The gross profit margin improved significantly to 28.39% in TTM from 19.46% in 2024, indicating better cost management. The net profit margin also increased to 16.77% in TTM, reflecting enhanced profitability. The EBIT and EBITDA margins have strengthened, showcasing operational efficiency. Overall, the income statement reflects a positive growth trajectory and improved profitability.

Balance Sheet

The company's debt-to-equity ratio remains low at 0.17 in TTM, indicating conservative leverage. Return on equity improved to 10.94% in TTM, showing better returns for shareholders. The equity ratio is stable, suggesting a strong equity base. The balance sheet reflects financial stability with manageable debt levels and improved shareholder returns.

Cash Flow

Operating cash flow increased significantly, with a strong operating cash flow to net income ratio of 1.52 in TTM, indicating robust cash generation. Free cash flow grew by 27.60% in TTM, enhancing financial flexibility. The free cash flow to net income ratio of 0.70 in TTM suggests efficient cash conversion. Overall, the cash flow statement shows strong cash generation and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.25B	2.82B	2.32B	1.49B	1.63B	1.34B
Gross Profit	1.02B	548.50M	214.60M	48.36M	367.94M	360.18M
EBITDA	1.52B	1.05B	476.80M	22.07M	554.87M	539.07M
Net Income	634.10M	111.50M	-103.70M	-340.06M	97.43M	177.88M
Balance Sheet
Total Assets	9.15B	7.20B	7.21B	3.25B	3.52B	3.43B
Cash, Cash Equivalents and Short-Term Investments	910.80M	887.30M	440.90M	142.34M	335.27M	279.06M
Total Debt	857.00M	803.30M	801.60M	226.84M	45.86M	33.56M
Total Liabilities	2.52B	2.49B	2.44B	1.05B	882.58M	828.04M
Stockholders Equity	6.62B	4.70B	4.76B	2.20B	2.63B	2.60B
Cash Flow
Free Cash Flow	746.10M	400.80M	71.20M	-242.78M	148.63M	283.76M
Operating Cash Flow	1.05B	724.10M	450.20M	31.91M	392.11M	462.31M
Investing Cash Flow	-380.80M	-32.60M	397.90M	-255.40M	-186.66M	-83.92M
Financing Cash Flow	-238.00M	-225.20M	-551.80M	52.97M	-85.91M	-329.59M

Pan American Silver Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 76.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PAAS, the sentiment is Positive. The current price of 76.69 is above the 20-day moving average (MA) of 69.70, above the 50-day MA of 60.04, and above the 200-day MA of 45.92, indicating a bullish trend. The MACD of 3.80 indicates Positive momentum. The RSI at 72.56 is Negative, neither overbought nor oversold. The STOCH value of 67.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PAAS.

Pan American Silver Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAAS	80 Outperform	C$32.37B	31.70	11.27%	0.88%	25.04%	―
FVI	76 Outperform	C$4.41B	12.75	15.63%	―	7.61%	915.74%
SVM	73 Outperform	C$2.81B	79.50	3.54%	0.29%	37.50%	-60.92%
AYA	66 Neutral	C$3.03B	1,216.07	0.71%	―	241.04%	-80.07%
DSV	65 Neutral	C$6.92B	218.07	11.03%	―	―	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AG	59 Neutral	C$12.69B	151.32	3.44%	0.12%	88.70%	―

Pan American Silver Corporate Events

Pan American Silver Expands Stake in Galleon Gold Through Strategic Acquisition

Pan American Silver Corp. has acquired 18,750,000 units of Galleon Gold Corp. as part of a private placement, marking a significant investment move. This acquisition positions Pan American to potentially increase its stake in Galleon, reflecting a strategic investment approach that could influence its market presence and stakeholder interests.

The most recent analyst rating on (TSE:PAAS) stock is a Buy with a C$51.00 price target. To see the full list of analyst forecasts on Pan American Silver stock, see the TSE:PAAS Stock Forecast page.